analyticsVertical SaaS
Data as of Q1 2026
Summary Verdict
NET: 3—ALRM: 2wins
Rule of 40
41.1NET
18.7ALRM
check_circleNET leads
Revenue Growth
31.4%NET
8.0%ALRM
check_circleNET leads
Gross Margin
74%NET
66%ALRM
check_circleNET leads
FCF Margin
9.7%NET
10.7%ALRM
check_circleALRM leads
Operating Margin
-10.0%NET
12.8%ALRM
check_circleALRM leads
NRR
—NET
—ALRM
Metric
Rule of 40Efficiency score
NET
41.1check_circle
ALRM
18.7
Revenue GrowthYoY
NET
31.4%check_circle
ALRM
8.0%
Gross Margin% of revenue
NET
74%check_circle
ALRM
66%
FCF MarginFree cash flow
NET
9.7%
ALRM
10.7%check_circle
Operating MarginGAAP
NET
-10.0%
ALRM
12.8%check_circle
NRRNet retention
NET
N/A
ALRM
N/A
EV / RevenueValuation multiple
NET
40.2x
ALRM
1.1xcheck_circle
Market CapUSD
NET
$88.4Bcheck_circle
ALRM
$2.2B
ARR GrowthYoY
NET
N/A
ALRM
N/A
CAC PaybackMonths to recover
NET
N/A
ALRM
N/A
Advertisement
insights
Analysis
As of Q1 2026, Cloudflare, Inc. trades at 40.2x EV/Revenue versus Alarm.com Holdings, Inc. at 1.1x. On the Rule of 40, Cloudflare, Inc. scores 41.1 compared to Alarm.com Holdings, Inc.'s 18.7, placing Cloudflare, Inc. ahead in operating efficiency. Gross margins stand at Cloudflare, Inc. 74% vs Alarm.com Holdings, Inc. 66%.
Sector Context
Both companies operate in the Vertical SaaS sector. The median columns above show where each company stands relative to their peers.